Free trade packed bad for Michigan agriculture

Free trade pacts bad for Michigan agricultureBy Curtis W. Ellis & Marilynn MomberPending free trade agreements with Korea, Colombia and Panama are bad forMichigan farmers and must be rejected if we are to preserve our way oflife.All three trade treaties are based on NAFTA-style policies which havedisplaced American farmers while sending jobs that support Michigansrural communities offshore. In fact, our leading export is jobs even as wereward companies that outsource jobs. Since NAFTA took effect, the UnitedStates has lost 300,000 farms and millions of jobs.Major commodity groups and agribusiness organizations have been beatingthe drum for passage of these free trade agreements (FTAs). They makedubious claims that there will be massive export gains for farm productsas a result of these FTAs.The American Farm Bureau Federation Farm has released a study thatestimates the Korea FTA would result in $1.65 billion in additional U.S.agricultural sales - but the Farm Bureaus figures only look at grossexports while never including expanded imports. Net trade is whatmatters.The Farm Bureaus fuzzy math also arbitrarily assumes an automatic 10% increase (a figure pulled out of thin air) for U.S. market share in Koreafor every American agricultural sector, despite a finding from the U.S.International Trade Commission (USITC) that says corn, soybeans and wheatwould be net losers, and rice is not even covered in the Korea FTA. TheUSITC projects many American agricultural sectors would face a worseningtrade balance were the free trade agreement to be implemented. This is avery serious manipulation.Loopholes in the FTAs rules-of-origin promote leakage, so countries suchas China and Vietnam are allowed to gain at our expense.Since only 35% of a products value must be added in Korea, there is amajor trans-shipment risk from China in processed foods. Chinese appleshave already decimated the Michigan apple industry and we should not beallowing food processed in the U.S. or Korea but grown elsewhere to getfree trade benefits such as the duty-free access provided by the deal.Michigan cattle and beef producers will also be harmed by these free tradeacts. The U.S. has NAFTA-style trade deals with 17 other nations, and ourcumulative trade deficit in cattle and beef is twice as high with these 17countries as it is with the rest of the world. Over the past 30 years,more than half a million beef ranchers have left the industry as largemeatpackers have reaped the benefits of these flawed trade agreements.Under the proposed deal, Korea could import cattle from China (the worldsthird-largest cattle herd) and get preferred treatment to ship that beefto the U.S. Adding insult to injury, South Korea bans imports of our beeffrom cattle over 30 months old due to fears of mad cow disease. Colombia,a major beef producer, would also be able to trans-ship from Brazil, agargantuan beef producer whose imports would harm our cattle industry.All three free trade acts have weak rules on labor standards and foodsafety and inspection which put Michigan farmers at a disadvantage. AMichigan cherry grower has to adhere to labor, environmental, pesticideand chemical usage standards that their counterparts overseas dont face.Finally, all three acts weaken American sovereignty. Foreign investorsand foreign corporations would be able to challenge state and federal lawsbefore unelected, unaccountable international tribunals such as the WorldBank and United Nations. The American taxpayer would have no rights ofdue process, and wed be on the hook to pay compensation for claimed tradepact violations.We see how this works with the recent World Trade Organization rulingstriking down U.S. country of origin labeling law. That law  approved bythe U.S. Congress  lets consumers know where the food they eat is grown. The Canadian and Mexican governments challenged it, saying it gives foodgrown in the U.S.A. an unfair advantage over imports. If the rulingstands, the will of the American people will be nullified by anonymousbureaucrats in Geneva, and American citizens could be asked to paydamages to foreign agribusinesses hurt by our country-of-origin laws.Michigans 4th congressional district contains more farms than any otherdistrict in the state. We urge Congressman Dave Camp to reject these badlyflawed trade deals. Michigans farmers and working families deserve fairtrade and a fair shake, not the continued attack on our way of life thatthese pacts represent.

Curtis W. Ellis is the executive director of the American Jobs Alliancehttp://www.americanjobsalliance.com/ Marilynn Momber is president ofMichigan Farmers Union http://www.nfu.org/